7th Central Pay Commission – Minimum wage and Fitment formula

June 9, 2016

7th CPC – Minimum wage and Fitment formula

Comrades,

The Staff side had demand of minimum wage of Rs 26000/- & fitment formula of 3.71. Against this the 7th CPC had recommended minimum wage of Rs 18000/- & fitment formula of 2.57. The 7th CPC recommendations has provided only at 14% wage hike at Group “C” level it is only ranging from Rs 2240/- to Rs 3500/- increase per month, and at Group “B” level ranging from Rs 4000/- to Rs 6500/- increase per month. After deductions & income tax the net increase will be just from Rs 500/- to Rs 3000/- only .

This increase is lowest by any pay commission, hence vast changes are required as the prices of essential commodities have gone up and also the inflation rate has gone up.

There are various reports on 7th Central Pay commission on the media reports on minimum wage of Rs 21000/- & fitment formula of 3.00, (which is at 34% wage hike against the 14% wage hike recommended by the 7thCPC).

The Empowered committee of Secretaries have not finalised any such minimum wage and fitment formula, the meeting is scheduled on 11th June 2016.

Please go through minimum wage as on 1/1/2016 using the prices as on 1/7/2015 of the Director of Economic & statics , Ministry of Agriculture and Farmers Welfare, Government of India, New Delhi.

Sources website : http://rpms.dacnet.nic.in/QueryReport.aspx

Minimum Wage as per Government Prices as on 1/7/2015

Item

Per Month

Average

Amount

3 units

Rate

in Kgs/ mt

Rice fine/Wheat

42.75

32.45

1387.2375

Dal / Pulses

7.2

112.96

813.20

Raw Vegetables

9

112.96

1016.64

Green Vegetables*

11.25

26.78

301.275

Other Vegetables*

6.75

50

337.5

Fruits

10.8

45

486

Milk Dairy

18

97.92

1762.56

Sugar

5

41.85

209.25

Edible Oil

3.6

142.42

512.712

Fish

2.5

231.67

579.175

Meat Mutton

5

401.95

2009.75

Egg

90

4.68

421.2

Detergents*

1

250

250

Clothes

5.5

279.34

1536.37

Total

10809.6695

Housing @ 7.5%

810.65

Miscellaneous @ 20%

2161.93

Total

13782.2495

Additional @ 25%

3445

17227.2495

Grand Total –

Minimum pay for unskilled worker in the erstwhile Group D

17227

Additional @ 25% for Group “C”

4306.75

Minimum pay for skilled worker in the erstwhile Group “C”

21533.75

Rounded off to Rs 22000/-

Add 6% for DA = 125% difference

646

Actual Minimum wage as on 1/1/2016

22179.75

We should add 10% for difference between retail price and Government rates. It is clear that we should get minimum wage of Rs 24500 and fitment formula is 24500/ 7000 is 3.40 that is 50% wage hike .

The 7th CPC had provided wrong prices for example

Rice/Wheat Rs 25.93 per kg

Dal (Toor/Urad/Moong) Rs 97.84 per kg

If correct prices were adopted by the 7th CPC and correct methodology is adopted we would have got better minimum wage and fitment formula,

Comrades it is the time to struggle, we should educate the members and prepare for struggle, so that we should get at least 50 % wage hike without allowances, as allowances are not taken into pension benefit.

Only struggle will get us benefit. Please don’t believe on rumours. Now it is now or never. Serve strike notice on 9th June 2016.